Libya’s oil trade is in disarray simply because the world wants it greater than ever

A member of the Petroleum Facilities Guard is seen at the entrance of Azzawiyah Oil Refinery, in Zawiyah west of Tripoli, Libya July 23, 2020.

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The Libyan oil ministry told CNN on Wednesday that production had shrunk to a near halt in June, to 100,000 barrels per day (bpd) from 1.2 million bpd last year. But on Monday, oil minister Mohamed Oun told CNN that production had climbed up to 800,000 barrels a day, saying some fields had come back online.

The US ambassador to Libya, Richard Norland, told CNN on Thursday that due to the country’s political tensions “there are certain parties who seek to gain advantage by misrepresenting oil production figures.” The earlier figures provided by the oil ministry were “inaccurate,” he said, adding that “actual production is significantly higher.”

Here’s what you need to know about Libya’s oil:

Why does Libya’s oil matter?

The North African nation sits on 3% of the world’s proven oil reserves, said Yousef Al Shammari, CEO and head of oil research at CMarkits in London. While it is a member of the OPEC oil cartel, it isn’t bound by its production caps due to the political crisis it…

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